Recommendation from Textiles and chemical Sector
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Hot Chips, Hot Chips, Recommendations
The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.
The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.
Gokaldas Exports Limited
CMP - ₹ 462.20
BSE CODE 532630
Volume 3,78,948
Face Value ₹ 5
Target ₹ 510-535
Stoploss ₹ 424 (CLS)
Gokaldas Exports, incorporated in 1995, is the largest exporter of garments in India. The company manufactures blazers and pants (formal and casuals), shorts, shirts, blouses, denim wear, swim wear, active and sportswear. Analysing the quarterly performance, net sales for Q4FY22 stood at ₹ 584.97 crore as opposed to ₹ 369.92 crore in Q4FY21, an increase of 58.13 per cent. The operating profit rose to ₹ 79.55 crore in Q4FY22 as compared to the operating profit of ₹ 37.99 crore in Q4FY21. Net profit surged as well in Q4FY22 and was reported at ₹ 60.91 crore, a phenomenal rise of 279.74 per cent compared to the net profit of ₹ 16.04 crore reported in Q4FY21.The company has reported an excellent performance this quarter and is in a rapid growth phase. This is due to a robust order book for the next six months, peak production and contribution from the recently commissioned plants in Karnataka. The growth is expected to be driven by a mix of price hikes too. Hence, we recommend BUY.
Grauer & Weil (India) Ltd.
CMP - ₹ 69.45
BSE CODE 505710
Volume 1,96,176
Face Value ₹ 1
Target ₹ 83-88
Stoploss ₹ 63 (CLS)
Growel & Weil (India) has long been a trailblazer in the field of general metal finishing as well as a strong competitor in the fields of electroplating, specialty chemicals and engineering equipment. Analysing the quarterly performance, net sales for Q3FY22 stood at ₹ 203.17 crore as opposed to ₹ 170.83 crore in Q3FY21, a marginal increase of 18.93 per cent. The operating profit was slightly on the lower side at ₹ 37.16 crore in Q3FY22 as compared to the operating profit of ₹ 37.17 crore in Q3FY21. Net profit reduced as well in Q3FY22 and was reported at ₹ 23.33 crore, lower by 4.03 per cent as compared to the net profit of ₹ 24.31 crore reported in Q3FY21. The company is one of the leaders in metal finishing and has a wise strategy of cost control, dynamic product and customer management and product innovations. The shares of the company have surged to almost 15 per cent YTD. Hence, we recommend, BUY.
(Closing price as of May 02, 2022)